Trade ties are called unshakable China, US can solve any disputes by talking, Commerce Ministry says

ChinaChina and and the the United United States Statescan resolvecan resolveany trade any disputestrade disputesthrough throughtalks, since talks, bilateralsince bilateraltrade and trade economicand economic cooperation cooperationhave made have the madetwo countriesthe two countries inseparable, inseparable,the Ministrythe Ministryof Commerceof Commercesaid ahead of said US ahead president-electof US president-elect Donald Donald Trump’s Trump’staking office taking on Friday.office on Even Friday. though there are voices Evenin the Unitedthough there States are callingvoices for in protectionistthe United States trade calling measures for protectionistor having a trade trade measures war with China,or havingthe twoa trade sides war can with work China,out new the solutions,two sides can and work bilateral out ties new won’t solutions,be shakenand bilateralby such opinions,ties won’t saidbe shaken Ministry by suchof Commerceopinions, said spokesmanMinistry of Sun CommerceJiwen. spokesman Sun Jiwen.

Bilateral trade volume amounted to $519.6 billion in 2016 — 211 times higher than in 1979. Two-way investment also notably surged, exceeding $170 billion by the end of last year, data from the ministry shows.

“The Chinese government is willing to work with the new US administration to generate more Bilateral benefits tradefor businessesvolume amountedand consumersto $519.6on both billion sides,”in 2016said Sun.— 211 times higher than in 1979. Bilateral Two-way trade investmentand investmentalso notably created surged, 2.6 exceeding million $170 jobs billionin the by US the and end of contributedlast year, data $216 from billion the to ministrythe US shows. economy “Thein 2015 Chinese alone, government according is to willing a report to releasedwork with earlierthe new this US month administrationby the US-Chinato generate Business more Council. benefits for businesses and The consumers Chinese on middleboth sides,” class saidwill continueSun. to grow over the next Bilateral decade trade and and will investment likely exceed createdthe entire2.6 millionUS populationjobs in the by US 2026, and the contributedreport said. $216 Goods billion and to servicethe US exportseconomy from in 2015the alone,US to accordingChina areto a expectedreport releasedto reach earlier$369 billionthis monthby 2026 by and the US-China$520 billion Business by 2050, Council.it added.

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Jack Ma, executive chairman of Alibaba Group Holding, said at the World Economic Forum in Davos, Switzerland, that a trade war between the world’s two within biggesthis power economiesto prevent would it. be Maa disastersaid he wouldfor the even global sacrifice economy his and companyhe wouldif thatdo anythingwould prevent within suchhis powera conflict.to preventRen Hongbin,it. chairman of ChinaMa said Nationalhe would even Machinerysacrifice Industryhis companyCorp, knownif that wouldas Sinomach, prevent such said a conflict. companies on both Ren sides Hongbin, believe chairmanthere are of still China opportunities. National Machinery “SinomachIndustry Corp,has set known goals as to Sinomach,deepen ties said with companiesGeneral Electricon both sideson a believe wind-powerthere are projectstill opportunities.in Africa after they put a pilot project “Sinomachinto operationhas set goalsin Kenyato deepenin 2016,”ties with said GeneralRen. Electric Zhaoon a Ping, wind-power director projectof the in departmentAfrica after of they internationalput a pilot projecttrade into research operationat thein Kenya China in Council2016,” saidfor Ren.the Promotion of InternationalZhao Ping, director Trade, of said:the department“Rising frictionsof internationalare normal. ... tradeBut this research doesn’tat the mean China that Councilthere will for be the an Promotionintensive tradeof Internationalwar, as their Trade, economicsaid: “Rising and trade frictions relationsare normal.have become... But this more doesn’t interdependent.”mean that there will Whenbe an asked intensiveto sum trade up war, relations as their with economicthe US underand trade President relations Barack have become Obama, more who interdependent.”leaves office on Friday, Foreign MinistryWhen asked spokeswomanto sum Huaup relations Chunying with said the on US Thursdayunder Presidentthat “importantBarack Obama, progress” who has leavesbeen office made on on Friday, bilateral Foreign ties Ministryand the two spokeswomancountries shouldHua Chunyingmove forwardsaid on as Thursday partners that rather “importantthan competitors. progress” has been made on bilateral ties and the Contacttwo countriesthe writers shouldat zhongnan@chinadaily.com.cn move forward as partners rather than competitors.

Some hawkish members of the Donald Trump team have repeatedly adopted war-like rhetoric about the incoming administration’s trade relations with China and other developing countries. They seem to want to send the message that other countries need the United States more than the other way round. But like many presumptuous war mongers in the past, they may not see the whole picture or understand history. The trade war warriors’ first miscalculation is not recognizing that the world is now vastly different from the 1980s, when Ronald Reagan, their role model, was US president.

Since then, according to the World Bank, the global total of merchandise exports has climbed more than eight times to almost $16.5 trillion in 2015.

Of this amount, the United States accounts for a little more than 9 percent. So its ability to mobilize enough war efforts against the largest exporter, which accounts for 13.8 percent, cannot but be limited.

Second, according to the World Trade Organization, although China is dependent on the US for 18 percent of its total exports, larger than the US is on China (7.7 percent), China’s global reach is more extensive.

Third, as a result of its economic transition that has been underway over the past fewyears, China is increasingly less dependent on the making of small daily commodities. It has grown to be a versatile manufacturer and, empowered by up to 7 million college graduates every year, is now producing some of the best machinery in the world.

More recently, China has also grown into a worldwide investor, and most importantly in large infrastructure projects and technologies.

Last but not the least, the new administration has promised that the US economy will create 25 million more jobs. Can Trump’s trade war lieutenants say what these new workers will produce and, more pertinently, to whom these products will be sold?

If the US is going to produce more, it will have to sell more, and it will have to sell more to the rest of the world. And one of the world’s largest, and most rapidly growing group, of consumers will be in developing countries such as China.

So trying to shut out China is unwise, because it is equivalent to shutting out some of the best opportunities that free trade can generate for an economy. All the trade war threat to China is just the bluffing of a paper tiger.